Investing

3 Fidelity ETFs to Buy in March to Generate Big Passive Income In Retirement

Vandita Jadeja

Published: March 5, 2025 2:36 pm

Retail investors do not need to worry about picking individual stocks to ensure steady returns. If you are investing for retirement, you can let the brokerage firms do their job by investing in exchange-traded funds (ETFs). These funds provide optimal diversification and ensure steady returns over the years. Investing in stocks is riskier than owning ETFs. As you approach retirement, your risk appetite will be low, which is why ETFs can be an ideal choice for you.

Fidelity is one of the most well-known names in the industry due to its steady returns and low expense ratio. You will be able to invest in some of the best-performing stocks without having to track and choose them. Fidelity offers several ETFs to choose from, but we pick the top three to buy in March.

Key points in this article:

• Fidelity ETFs are ideal for a retirement portfolio.
• These funds will generate steady income in the form of dividends while offering steady portfolio growth.
• If you seek stocks that have a high upside potential, get your hands on our “The Next NVIDIA” report. It has a software stock with 10X potential.

Fidelity Blue Chip Growth ETF (FBCG)

With the Fidelity Blue Chip Growth ETF (BATS:FBCG), you can get exposure to over 200 growth stocks. It is an actively managed fund that focuses on blue-chip companies. Some of the biggest blue-chip companies in the market are tech industries, and you get exposure to the Magnificent Seven stocks that are driving the market today. The fund has an NAV of $43.66 and has generated 38% returns in the year and 15.79% returns in three years.

Blue-chip stocks aren’t cheap but they can deliver promising returns even in market volatility. The fund’s largest holdings are Nvidia (NASDAQ:NVDA), Apple Inc. (NASDAQ: AAPL) and Amazon (NASDAQ:AMZN). These companies have shown their strength time and again and continue to soar. It holds 233 stocks in total and over 60% of the fund is concentrated on tech companies.

The fund has an expense ratio of 0.59% and $2.9 billion in assets under management. It may not generate passive income in the form of dividends but will keep growing your money. If you invest in the fund years before retirement, you could enjoy solid portfolio growth when you retire. While the fund is dependent on the tech sector, it could continue to see steady gains since the tech industry is growing at a rapid pace.

Fidelity High Dividend ETF (FDVV)

As the name suggests, the Fidelity High Dividend ETF (NYSEARCA:FDVV) aims at generating steady returns in the form of dividends. It invests in mid-cap high-dividend paying companies that have a record of rewarding investors. This fund follows the Fidelity High Dividend Index and holds some of the top dividend-paying stocks including Exxon Mobil Corp. (NYSE: XOM), and Procter & Gamble Co. (NYSE: PG).

It has an expense ratio of 0.16% and an NAV of $50.99. FDVV invests over 30% in the technology sector, 21% in financials, and 13% in consumer staples. It has generated 21.61% returns in a year, 11.56% in three years, and 13.32% over five years.

It invests 31% of the total fund into 10 companies while the remaining 68% is distributed amongst the remaining companies. The top holdings of the fund include Apple Inc., Nvidia, Microsoft Corp. (NASDAQ: MSFT), and Broadcom (NASDAQ: AVGO).

The fund is highly diversified and has no more than 7% of the total assets in any stocks. This reduces the risk and enables the investors to make the most of their money. Besides the dividends, the companies held by the fund are some of the biggest growth drivers today. As compared to other Fidelity ETFs, this is one of the most stable and highly diversified funds to own.

Fidelity International High Dividend ETF (FIDI)

If you are keen on investing in global stocks at a low cost, this is the right fund to choose. The Fidelity International High Dividend ETF focuses on less than 100 dividend-paying stocks.

It invests in large and mid-cap stocks in global companies and focuses on a high dividend yield. The fund has a low expense ratio of 0.18% and boasts a high dividend yield of 5.84%. About 19% of the fund is invested in Japan-based stocks and 16% is in the United Kingdom stocks. Only 2.12% of the fund is invested in U.S. stocks.

The remaining are on the stocks focused on different countries including Australia and Germany. This fund carries slightly higher risk but also generates stellar returns. Its largest holdings are in financials, followed by materials and communications. The NAV of the fund is $21.18 and it has generated 14.90% returns in a year and 10.26% over a period of three years. Its top holdings include Nestlé S.A., Enel SpA, National Grid Plc, and Nutrien Ltd.

Since a large part of the fund is invested in international stocks, there is a certain element of risk but it also has the potential of generating returns.